Stamps are like socks, no matter how many you buy you never seem to have any.

The Vix falls as the global equity indexes rise, that is how it is supposed to work. Technology shares rise leading to a broad increase in inequities, even the smaller cap indexes showing modest gains. Chinese August industrial production was in the top half of the forecast range, helping European equities start Tuesday on the right foot. Unlike most of the rest of the year, the Russell 2000 index has outperformed the larger S&P 500 over the past week. The Vix index remains above its long term average, and while that is the case one has to worry that further asset price volatility is possible.

The Federal Reserve is currently engaged in their two-day policy meeting, no changes to rates are expected and the Fed will probably reiterate their intention not to raise interest rates for several years. The Fed will also update the market on its economic growth expectations, along with inflation and unemployment.

The Federal Reserve is likely to acknowledge the recovery in the economy in the past few months, in partway as a result of their actions. However as cases of the virus continue to rise around the globe, the Fed is likely to remain a cautious tone.

The current quarter will see a sharp recovery in the US economy, but as each day passes the focus will come closer to the US election. US interest rates remain historically low and the Fed has committed to keeping them there, prepared to allow inflation to rise above the target of 2% before acting. If we get a change of leadership, one whose policy is to spend, borrow and tax, no Rishi Sunak is not running for President, this is not a pretty picture for bond prices. Possibly forcing the Fed to rethink again its new policy intentions.

If Joe Biden did become President, those investors who have ridden the tech wave will underperform as the economically sensitive sectors will initially, at least, do well. Fund managers and the Fed will be faced with a few tricky decisions. Are we in a tech bubble, most likely,. One fascinating statistic, it took Apple over 40 years to become a trillion-dollar company and just 21 weeks to grow to become a two trillion-dollar company. The good news is that bubbles historically only get burst by the Fed raising rates, and as we will likely hear tomorrow they are not in any hurry to do that.